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Cryptocurrency exchange Huobi has become the largest shareholder of Pantronics Holdings, a Hong Kong-based publicly listed firm, CoinDesk reported.
The companies have issued a joint statement on the acquisition. Huobi Group purchased around 199 million shares of Pantronics Holdings via two of its subsidiaries – 70% by Huobi Universal and 30% by Huobi Capital. According to the terms of the deal, the shares were offered at an average price of HK$2.72 (or $0.35) per share for a total consideration of around $70 million.
With this, Huobi Group chairman Li Lin has become the largest individual substantial shareholder, owning approximately 66 percent of Pantronics.
“Upon Completion, the Offeror [Huobi Group] and Trinity Gate will hold 199,295,269 Shares and 16,280,731 Shares respectively, representing approximately 66.26% and 5.41% of the issued Shares of the Company [Pantronics] as at the date of this joint announcement respectively. Completion took place on the date of the Sale and Purchase Agreement on 21 August 2018,” the statement reads.
According to the document, Huobi intends to nominate new directors to the Board to deal with the business expansion and also intends “the issued Shares to remain listed on the Stock Exchange upon the close of the Offers.”
CoinDesk noted that the acquisition could give Huobi an opportunity of a “back-door listing” – where a private firm enters the secondary financial market by acquiring majority of shares of a public company.
Huobi Capital, which focuses on the blockchain industry venture capital, is wholly owned by Li. Huobi Universal was founded in 2014 as an investment holding company to invest or explore investment opportunities in various technology or innovation companies.
